Sanderson tries new rinse to resolve Russian trade issue

US poultry producer Sanderson Farms is trying a new rinse in some plants in hopes of winning back chicken sales to Russia.

Russia's new sanitation standards caused more than just a few complaints from the US poultry industry, as it bans chlorine-treated poultry just like the EU did. The US and the EU had been in a trade dispute for many years as a result.

Russia accounted for 2.5% of Sanderson's sales in fiscal year 2009, or about US$45 million.

The new rinse was estimated to cost about US$200,000 a month per plant, the company said Tuesday (Feb 23).

Company CEO Joe Sanderson said they are hopeful that an agreement will be reached that allows the US poultry industry to export into Russia again. The US and Russia are currently locked in negotiations over this issue.

However, the company is less optimistic about China's dumping allegations and the resulting heavy tariffs.

China accounted for 2.9% or US$53.5 million of Sanderson's sales in fiscal year 2009.

The issues with China are more complicated, Sanderson said.

Sanderson said it will appeal China's 64.5% tariff on its products, which are mainly wing tips and paws.